Loans by the Bank for Creditors

May 22, 2019

 

 

 

Personal Loans – what do you mean by that? Loans are used to make purchases, to pre-finance or to bridge a financial bottleneck. As a rule, loans from banks or financial institutions are either earmarked (examples include car loans and real estate loans) or are granted for free use. To obtain a loan, a potential borrower must, from the bank’s point of view, have a degree of creditworthiness to secure the loan. However, if this is not guaranteed due to a credit check with a negative result, access to desired credit offers by the bank is often denied. In such a situation, however, there are two alternatives to keep a desired loan: on the one hand the loan without Schufa , on the other a personal loan . But what is a personal loan and where are such loans offered?

The term “personal loan ” or “private loan ” basically also describes the specificity and the crucial difference to the bank-linked loans: Private individuals finance as “investors” outside of the regular banking system, the credit requests of other individuals. Generally, this type of loan is also referred to as a “peer-to-peer loan”.

Even relatives and friends can act as lenders for the personal loan

Personal loans are considered “negotiable” and therefore fair credit offers

Personal loans are considered "negotiable" and therefore fair credit offers

Private loans do not necessarily differ in their use from classic, ie bank-issued installment loans. However, it is also crucial in the case of private credit that the borrowed money is used exclusively to finance private needs. However, personal loans may have some advantages due to their design and common framework conditions for borrowers. In particular, from the point of view of potential credit seekers, it is above all the case that one does not have the feeling of being a petitioner in comparison with a credit conversation with the bank, but rather communicates with potential private lenders as partners at eye level.

The reason for this is a clearly recognizable interest situation for both parties: the lender wants to achieve the highest possible return (interest rate) and the borrower knows how to finance his wish. This offers the opportunity to negotiate honestly and to find a mutually beneficial loan agreement. Especially the possibility of negotiating an interest rate, many credit seekers consider an advantage in a loan from private individuals.

Also, the fact that a loan by private lenders with a burdened credit rating is not immediately a rejection due to extensive automatic mechanisms, can be regarded as an advantage. Ultimately, the private lenders decide freely whether or not they engage in lending despite the burden of a SCHUFA on a loan seeker. And if so, on what terms.

Even relatives and friends can act as lenders for the personal loan

Even relatives and friends can act as lenders for the personal loan

However, acquaintances or friends can also act as a source for a personal loan, provided that they are willing to lend. But as with all other types of credit also applies to personal loans: a loan agreement is a must! Independent of which the credit is granted from the family and / or acquaintances and friends or via a corresponding credit marketplace. The rule is: lending money is and remains a matter of trust.

Models for a binding and legally binding credit agreement, in which, as is usual with credit agreements between bank and borrower, the loan terms are recorded, can be downloaded free of charge from the Internet. A corresponding pattern can be found here